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Published on March 28, 2008

The event organiser will expand into the Asian market by establishing a joint venture with partners in Vietnam this year, having entered Cambodia a few years ago. The company expects to spend about Bt10 million for the joint venture.

After regrouping its business units, said Sermkhun, the company this year would move more into the organising business to supply production for backdrops and stage, artwork, audio and video systems and lighting effects.

This business is known as the supply unit.

Sermkhun said the supply unit was one of three main business divisions. The other two are the organiser and owner event units.

As the organiser business has slowed as a result of strong competition, he said CM Organiser (CMO) would have to seek other sources of income, though it had tried to establish its own event brands.

"The supply business has much higher net margins than the organiser business," he added.

In recent years, CMO has created its own annual programme with events such as the Hua Hin Jazz Festival, The Glitz, The Legend of Angkor Wat and Hands Bangkok Countdown@CentralWorld.

CMO has held seven of its own events each year. The company's event unit accounts for 12 to 13 per cent of overall revenue.

However, Sermkhun said the company targeted increasing this to 40 per cent within the next five years.

The organiser unit contributes about 40-50 per cent, while the supply unit accounts for about 35-38 per cent.

In 2007, CMO posted Bt867.99 million in revenue, compared to Bt785.58 million the year before. Its consolidated net profit was Bt530,000, down from Bt70.49 million in 2006.

Sermkhun said that the company's performance this year would be better than last year as losses from its subsidiary, Bayon CM Organiser, would rebound.

However, Phillip Securities has recommended "buy" on CMO stock in its research. The brokerage forecasts that CMO will earn a net profit of Bt41 million this year and Bt47 million in 2009. The dividend yield in 2008 for CMO will be 9.41 per cent, it said.

As of Wednesday, it had registered shares of Bt150 million with a par value of Bt1 each and market capitalisation of Bt303 million. The company's annual dividend yield has averaged 4.95 per cent.

Sasithorn Ongdee

The Nation